Answer:
(d). 216,541
Explanation:
Sales Consideration = $480,000
Book Value as on date of sale= Cost - accumulated depreciation till date = $360,000- $96,541
= $263,459
Long term capital gain (since asset held for use for more than an year)= Sales Consideration less Book value on date of sale = $480,000- $263,459
= $216,541
Since building comes under the definition of a capital asset and since it has been held for use for more than an year, the gain arising out on it's sale would be regarded as long term capital gain.
